AIB Steps Up Climate Action with €30 Billion Fund

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by KnowESG
KnowESG_AIB Steps Up Climate Action with €30 Billion Fund
Image courtesy of Reuters

Allied Irish Banks (AIB) has unveiled a substantial expansion of its Climate Action Fund, pledging to elevate the fund to €30 billion—a move poised to triple its existing size.

This bold initiative underscores the bank's dedication to financing green infrastructure projects and aligning its lending practices with environmental sustainability objectives.

During the seventh Sustainability Conference held in Dublin, attended by over 6,000 online viewers, AIB's CEO Colin Hunt underscored the imperative of addressing climate change.

AIB is on a trajectory to fully deploy the current €10 billion fund by year-end. Since the inception of the Climate Action Fund in 2019, initially targeting €1 billion in annual lending over five years, AIB has demonstrated a robust commitment to facilitating the transition to a low-carbon economy. The fund garnered an additional €5 billion within just two years due to its successful adoption.

The bank's initiatives have been further fortified by its venture into green bonds, with AIB pioneering as the first Irish bank to issue such instruments in 2020. Over the past three years, it has generated €4 billion from green bond sales, securing a total of €5.75 billion for Environmental, Social, and Governance (ESG) initiatives, encompassing social bonds.

AIB's strategy not only concentrates on expanding green financing but also aims for 70% of its new lending to be environmentally focused by 2030. This aligns with the International Monetary Fund's (IMF) recommendation, emphasising the necessity for private sector investment in Ireland's climate infrastructure, estimating annual costs at €20 billion over the next decade.

CEO Colin Hunt reiterated AIB's vision for a zero-carbon future, emphasising the critical need for immediate action following recent extreme weather events worldwide.

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